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FEDERAL RESERVE BANK O F NEW YORK r C ircular N o . 4 5 1 7 1 Fiscal Agent of the United States L October 17, 1957 J O ffering o f $1,600,000,000 o f 91-Day Treasury B ills D a ted O c t o b e r 2 4 , 1 9 5 7 M a tu r in g J a n u a r y 2 3 , 1 9 5 8 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: Following is the text o f a notice published tod a y : F O R R E L E A S E , M O R N IN G N E W S P A P E R S , T h u rsd a y , O c t o b e r 17, 1957. TREASURY DEPARTM ENT W a s h in g to n T h e T re a su ry D ep a rtm en t, b y this pu blic n otice, invites ten ders fo r $1,600,000,000, o r th ereabouts, o f 9 1-d ay T rea su ry b ills, fo r ca sh and in e x ch a n g e fo r T rea su ry b ills m atu rin g O c t o b e r 24, 1957, in the a m ou n t o f $1,600,512,000. to be issued o n a d iscou n t basis u nder com p etitiv e and n on com p etitiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill b e dated O c t o b e r 24, 1957, and w ill m ature January 23, 1958, w h en the face a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer to rm o n ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ). T e n d e r s w ill be receiv ed at F ed era l R eserve B anks and B ra n ch es up t o the c lo s in g h ou r, tw o o ’ c lo c k p.m ., E astern D a y lig h t S a v in g tim e, M on d a y , O c t o b e r 21, 1957. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a s h in g to n . E a ch ten der m u st be fo r an even m u ltip le o f $1,000, and in the ca se o f co m p e titiv e ten ders th e p rice o ffe re d m u st be ex p re sse d o n th e basis o f 100, w ith n ot m o re than th ree d ecim a ls, e.g., 99.925. F r a c tio n s m a y n ot be u sed. It is u rg ed that ten ders be m a d e o n th e p rin ted fo rm s a n d fo rw a rd e d in the sp ecia l en v elop es w h ich w ill be sup plied b y F ed eral R eserve B ank s o r B ran ch es o n a pp lica tion th erefor. O th e rs than b a n k in g institutions w ill n ot b e p erm itted t o subm it tenders e x c e p t f o r th eir o w n a c c o u n t T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in co rp o ra te d banks and trust com p a n ies and fr o m resp on sib le and r e co g n iz e d dealers in in vest m en t secu rities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied b y p a ym en t o f 2 p ercen t o f th e fa c e a m ou n t o f T r e a s u ry bills a pp lied fo r , u nless th e ten ders are a cco m p a n ie d b y an ex p re s s gu a ra n ty o f p a y m en t b y an in corp ora ted bank o r trust com p a n y . Im m e d ia te ly a fter th e clo s in g h ou r, ten ders w ill b e o p e n e d at th e F ed era l R e s e rv e B anks and B ra n ch es, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill b e m ade b y th e T r e a s u ry D epa rtm en t o f th e a m ou n t a n d p r ice ra n ge o f a ccep ted b ids. 'ITiose su b m ittin g ten ders w ill b e a d v ised o f th e a ccep ta n ce o r re je c tio n th ereof. _ T h e S ecreta ry o f th e T rea su ry e x p re s sly reserves the righ t to a cce p t o r re je ct a n y o r all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall b e final. S u b je ct to th ese reserva tion s, n on com p etitiv e tenders fo r $200,000 o r less w ith ou t stated p r ice fro m a n y o n e b idd er w ill b e a cce p te d in fu ll at the a vera ge p rice (in th ree d ecim a ls) o f a ccep ted com p etitiv e bids. Settlem ent f o r a ccep ted ten ders in a cco rd a n ce w ith th e bids m ust be m ade o r com p le te d at the Federal R e serv e B ank o n O c t o b e r 24, 1957, in cash o r oth er im m ediately available fun ds o r in a like fa ce am ou nt o f T r e a s u ry bills m atu rin g O c t o b e r 24, 1957. C ash and ex ch a n g e ten ders w ill receiv e equal treatm en t. C ash ad ju stm en ts w ill be m ade f o r d ifferen ces betw een the par va lu e o f m atu rin g bills a ccep te d in e x c h a n g e and th e issue p r ice o f the new bills. T h e in co m e d erived fr o m T rea su ry bills, w hether interest o r ga in fr o m th e sale o r oth er d isp osition o f the bills, d o e s n o t have a n y e x e m p tion , as such, and lo s s fr o m the sale o r oth er d isp osition o f T r e a s u ry bills d oes n ot have any special tre a t m en t, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er excise taxes, w h eth er F ed eral o r State, but are exem p t fr o m all taxation n o w o r h ereafter im p osed on the principal o r interest th ereof b y any State, o r a n y o f the possession s o f the U nited States, or b y any loca l ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f d is co u n t at w h ich T r e a s u ry bills are orig in a lly s o ld b y the U n ited States is c o n s id e re d to be in terest. U n d e r S e ctio n s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C od e o f 1954 th e a m ou n t o f d iscou n t at w h ich bills issued h ereunder are so ld is n o t co n sid ered t o accru e until such bills are sold , red eem ed o r oth erw ise disp osed o f, and such bills are exclu d ed fro m con sid era tion as capital assets. A c c o r d in g ly , the o w n er o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued hereun der need in clu d e in his in com e ta x return o n ly the differen ce betw een the price paid f o r such b ills, w h eth er on original issue o r o n subsequen t purchase, and th e a m ou n t actu a lly receiv ed either u p on sale o r red em p tion at m atu rity d u rin g the taxable yea r f o r w h ich the return is m ade, as ord in a ry ga in o r loss. T r e a s u ry D ep a rtm en t C ircu la r N o . 418, R evised , and this n otice, p rescrib e th e term s o f th e T r e a s u ry bills and g o v e rn the co n d itio n s o f their issue. C op ies o f the circu la r m a y be obtain ed fr o m a n y F ed eral R es e rv e B a n k o r B ranch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, October 21, 1957, at the Securities Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Tenders may be sub mitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment fo r the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A lfr e d H ayes, President. Results o f last offering o f Treasury bills (9 1 -d a y bills dated O ctober 17, 1957, m aturing January 16, 1958) T o t a l applied fo r . . .$2,453,685,000 T o t a l a ccep ted .........$1,600,537,000 (in clu d e s $412,474,000 en tered on a n on co m p e titiv e basis and a ccep ted in full at th e a vera ge p rice sh ow n b e lo w ) Range of accepted competitive bids: H ig h L ow 99.11a .................. 99.070 E quivalent rate a p p ro x . 3.o01% E quivalent rate a p p ro x . 3.679% S cC on d o f d iscou n t p e r annum o f d iscou n t per annum a p p rox . J.OOU/c p er annum (77 percent o f the a m ou n t b id fo r at th e lo w p rice w as a cce p te d ) Federal Reserve ------- District____ B oston ............................. N ew Y o r k ...................... P h iladelp hia .................. A tla n ta .............................. C h ica g o St. L o u is M in n e a p o lis ..................... San F r a n cis co T o t a l ................ Total Applied f o r $ 45,506,000 1,702,916.000 43,862,000 Total Accepted $ 35,506,000 948,463,000 27,862,000 ^OOMOO ilo&OOO 43,441,000 246.047,000 45.781,000 17,276.000 43 372 000 198.437i000 45,581.000 17,030,000 108.965.000 --------------------— $2,453,685,000 93,235,000 ----------------- ---$1,600,537,000 ( over) IM P O R T A N T — P lea se n o te that clo s in g tim e is 2 p .m ., E astern D ayligh t S avin g tim e. No.................... TENDER FOR 91-DAY TREASURY BILLS Dated October 24, 1957 Maturing January 23, 1958 To F ederal R eserve B a n k of N ew Y ork Dated at , 19... Fiscal Agent o f the United States. Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice issued by the Treasury Department and printed on the reverse side o f this tender, the under signed hereby offers to purchase the above described Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated b elow : C O M P E TIT IV E TEN DER [ D o not fill in both Com petitive and N oncom petitive tenders on one fo rm $ ........................................................... (maturity value), or any lesser amount that may be awarded. P r i c e : .................................... per 100. (P r ic e must be exp ressed with not m ore than three decimal places, f o r exam ple, 99.925) N O N C O M PE TITIV E TE N D E R $ ........................................................... (maturity value). (N o t to exceed $200,000 f o r one bidder through all sou rces) A t the average price o f accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below : Pieces Denomination $ Maturity value 1,000 5,000 10,000 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping ( f o r ac count o f member bank only) □ 4. Allotment attached) □ 5. Special instructions: 100,000 transfer (see Paym ent will be made as fo llo w s : □ B y charge to our reserve account □ B y cash or other immediately avail able funds □ By surrender o f $ ........................... (m aturity value) o f maturing Treasu ry bills. P ay cash adjust ment, if any— list 500,000 □ B y check 1,000,000 □ B y credit to our reserve account (N o changes in delivery instructions will be accepted) T otals------- (P aym en t cannot be made through Treasury T a x and Loan A ccou n t) The undersigned ( i f a bank or trust com pany) hereby certifies that the Treasury bills which you are hereby instructed to dispose o f in the manner indicated in item 3 above are solely owned by the undersigned. N am e o f su b scrib er ........... Insert this tender in special en velop e m a rk ed “ T e n d e r _ fo r Treasury Bills” (Please print) By ............................................... .................... » B y ------ (Official signature(s) required) T i t l e ............................................................................. , T itle A d d re s s ........................................................................................................ (B anks submitting tenders f o r customer account must indicate name on line below , or attach a list) (Name of customer) (Address) IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 w ill be co n sid ered , and each ten d er m u st b e f o r an even m u ltip le o f $1,000 (m a tu rity va lu e). 2. O th e rs than b a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders e x ce p t f o r their o w n a ccou n t. B anks su b m ittin g ten ders fo r c u sto m e r a cco u n t m ay co n so lid a te com p etitive tenders at the same price and m a y co n so lid a te n o n co m p e titiv e ten d ers, p r o v id e d a list is attached s h o w in g the nam e o f each bidd er, the a m ou n t b id f o r his a cco u n t, and m e th o d o f paym ent. F o r m s f o r this p u rp ose w ill be fu rn ish ed on request. 3. I f th e p e rso n m a k in g the ten der is a c o rp o ra tio n , the ten der sh ou ld be sign ed b y an o ffice r o f the co rp o ra tio n a u th o rize d to m a k e th e ten der, a n d the sign in g o f the ten der b y an officer o f the co r p o r a tio n w ill be co n stru e d as a represen tation b y him that he has been s o au th orized . I f the ten der is m ade b y a partnersh ip, it sh ou ld be sign ed b y a m e m b e r o f the firm , w h o s h ou ld sign in the fo r m “ ..............................................................................................., a cop a rtn ersh ip , b y ................................................................................................................... . a m e m b e r o f the firm .” 4. T e n d e r s w ill be receiv ed w ith ou t d e p o s it fr o m in co rp o ra te d banks and trust co m p a n ie s and fro m re s p o n sib le and r e co g n iz e d dealers in in vestm ent securities. T en d ers fr o m oth ers m u st be a cco m p a n ie d b y p a ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T r e a s u ry bills a pp lied fo r , u nless the ten ders are a ccom p a n ied b y an ex p re s s gu a ra n ty o f paym ent b y an in co rp o ra te d bank o r trust com p a n y . 5. I f th e la n g u a ge o f this ten der is ch a n g ed in a n y resp ect, w hich, in the op in io n o f the S ecreta ry o f the T rea su ry, is m aterial, th e ten der m a y be disregarded. ( over)
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